There’s a nice feature comparison of Office Live Workspace with Google Docs at Read Write Web, but in checking out the bells and whistles, don’t overlook the key differentiator: “Files can’t be edited from within Workspace, but clicking on “edit” will open them up in Microsoft Office (of course).” For better or worse, Office Live Workspace is not a Web app for editing and creating office documents – it’s a free document sharing service for purchasers of Microsoft Office.

As I have observed previously, Office Live Workspace is a reasonable way for Microsoft to try to keep Office users on the reservation. The question is whether it is enough.

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[...] to compete with applications running in the cloud, a lesson Microsoft has already acted on with Office Live Workspace. However, since today most folks aren’t using cloud applications anyhow, Live Mesh seems very [...]